Mortgage rates eased lower after reaching a 22-year high last week.
The average rate on a 30-year fixed-rate loan decreased to 7.18% for the week ending August 31, according to Freddie Mac’s benchmark survey. That represents a change of 0.05 percentage points over the past week. The rate on a 15-year fixed-rate mortgage was unchanged, staying at 6.55%.
Mortgage rates ease lower as the economy slows
Economic uncertainty continues to play a major role in the current interest rate movement. This week, signs of a cooling economy finally pushed rates a little lower.
Payroll data firm ADP reports that employers added 177,000 jobs in August, below the 200,000 estimate made by market observers. In other labor-related news, the number of job openings has dropped to 8.8 million; a sign that the jobs market is looking a little less resilient.
The next set of data analysts will be looking at is the core inflation report and the jobs report set to be released on Friday.
“Cooling demand and slowing wage growth is expected to bring down core inflation further, which would likely provide more relief for rates,” said Orphe Divounguy, senior macroeconomist at Zillow, in a prepared statement.
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